The increase in electricity tariffs announced by the Regulatory Commission
last evening ranging from 30% for domestic consumers to 67% for farmers
paying at flat rate is inhuman and unacceptable. It is clear that this
tariff hike is an attack on public interest, and the loot of the common
people of Madhya Pradesh that will be a consequence of this tariff hike in
accordance with the conditions set by the Asian Development Bank. This
tariff hike declared by the Regulatory Commission last evening also exposes
the hollow claims of the Government of Madhya Pradesh that it would reduce
the tariff proposal made by the MPSEB. The Jan Sangharsh Morcha condemns
this tariff hike done at the instance of foreign financial institutions who
want to loot the country and demands that the state government should file a
review petition to withdraw the tariff increase. The Jan Sangharsh Morcha
declares that it will begin a state-wide struggle against this tariff hike
and destructive power sector reforms that are being brought into Madhya
Pradesh, and that has endangered the entire economy.

While the Madhya Pradesh Regulatory Commission has ordered and increase of
nearly 30% for domestic consumers throughout the state, as per its orders,
farmers paying at flat rates will have to pay 67% more. Power loom workers
will also have to pay 50 % more. It is surprising that such huge increases
should be made after tariffs had been increased by 20% only last year. It is
also extremely disturbing that the Madhya Pradesh Electricity Regulatory
Commission has disregarded the fact of the complete non-compliance of the
First Tariff order by the Madhya Pradesh State Electricity Board. It may be
recalled that the MPSERC had passed the First Tariff order in November 2001.
In this order, it had directed the MPSEB to recover arrears, an outstanding
of nearly 1000 crores from the 1500 HT industrialists in the state, to
increase the Plant load factor up to 71%, and to decrease the T&D losses to
42%. But the Madhya Pradesh State Electricity Board was able to decrease the
existing T&D loss of 51 % only up to 49%. It was able to increase the PLF
only up to 62% instead of 71%. It has also failed to recover the arrears.
Had the MPSEB only functioned as had been ordered in the First Tariff
Petition, there would have been no need for this proposal to increase
tariffs to mobilize Rs. 999 crores. It would have been appropriate if the
MPSERC had upheld Section 26 of the Vidyut Sudhar Adhiniyam 2001 which
stated that tariff increase could take place only at an increasing and
adequate level of efficency, taken cognizance of this non-compliance by the
MPSEB and had rejected the petition for increased tariffs on these grounds,
but the MPSERC chose not to do so, thus demonstrating that the MPSERC orders
are only for the consumers, and not for the MPSEB.

It is thus amply clear that all 65 lakh LT consumers will be badly affected
by the tariff order. The state is already facing the impact of four years of
drought and farmers are facing an adverse market due to the removal of
quantitative restrictions in the import of agricultural commodities and the
removal of subsidies in fertilizers and pesticides. This will push the
farmers, workers and the common people of this state and the state economy
over the edge and destroy it altogether.

Loot of common people on orders of Asia Development Bank

It may be noted that it is a clear condition of the agreement executed by
the Government of Madhya Pradesh with the Asia Development Bank that the
electricity tariffs will be increased before every instalment of Rs. 720
crores loan. In fact it was per the conditions of the Asia Development bank
that this tariff petition was filed before the MPSERC in September 2002.
Thus it is clear as per the facts, arguments and the law that any tariff
increase for consumers for this financial year is completely unnecessary and
unjustified Yet, these massive increases in tariffs have been wrought in
order to obey the writ of the Asia Development Bank. This tariff increase is
clearly a part of a foreign conspiracy and is loot of the people of Madhya
Pradesh at the instance of the Asia Development Bank.

False claims of the State Government exposed :

It may be recalled that only a few days back, in response to the people's
anger after the tariff petition was filed, it was reported that the state
government had taken a decision in the cabinet to ensure tariff increase of
only 10%. The people of the state were lulled into believing that the tariff
increase would only be 10%. However the state government was not in earnest
and therefore it did not give its rejoinder to the petition on affidavit as
was required. The fact that the MPSERC has increased tariffs from 30 % up to
70 % clearly shows that the state government had made false claims about its
representation to the MPSERC, and was merely attempting to fool the people.

State wide Andolan to be launched

The Jan Sangharsh Morcha, during the Bijli Bachao - Azadi Bachao yatra it
undertaken in the last fifteen days from the 15th to 29th November and in
its rally of the 30th November brought out that this tariff increase is
being undertaken as part of a foreign conspiracy and is a thinly disguised
attempt to dismantle and destroy the economy of the state. This illogical
and unjustified tariff increase has only confirmed it.

The Jan Sangarsh Morcha is planning to move the Courts after studying the
order in toto. It is also planning a state wide movement against this tariff
rise. The Jan Sangarsh Morcha regards that the present tariff increase
indicates the submission of elected governments before foreign financial
institutions, and warns that the people of this state will not accept this
destruction and foreign slavery at any cost. The Jan Sangharsh Morcha
demands that the state government must immediately file a review petition
before the MPSERC to withdraw this tariff hike. it states that it will wage
a state wide struggle against this tariff hike and compel the state
government to take back this tariff hike petititon.